Topsports International (6110) H2 2026 earnings summary

Executive summary

• Revenue declined 4.7% year-over-year to RMB 25.74 billion due to weak macro consumption, lower offline foot traffic, and fluctuating demand, partially offset by online growth.

• Net profit attributable to equity holders decreased 1.5% year-over-year to RMB 1.27 billion, with net profit margin improving slightly to 4.9%.

• Strategic focus on omni-channel operations, digital empowerment, and prudent inventory management.

• Store count declined 13.1% year-over-year to 4,360, reflecting operational efficiency and omni-channel synergy.

• Maintained a strong cash position and recommended a total dividend of RMB 28.00 cents per share, with a payout ratio of 137.1%.

Financial highlights

• Gross profit fell 5.8% year-over-year to RMB 9.78 billion, with gross margin down 0.4 percentage points to 38.0%.

• Operating profit was RMB 1,521.8 million (down 4.5% YoY); net profit was RMB 1,266.8 million (down 1.5% YoY).

• SG&A expenses dropped 6.7% year-over-year, with the expense ratio improving by 0.7 percentage points.

• Earnings per share decreased 1.5% year-over-year to RMB 20.43 cents.

• Inventory decreased 8.6% to RMB 5,485.9 million; capital expenditure fell 24% to RMB 286.6 million.

Outlook and guidance

• Plans to prioritize operational efficiency, omni-channel digital transformation, and professional segment optimization.

• Continued investment in digital intelligence and AI to drive business efficiency and user engagement.

• Commitment to ESG and sustainable development, with ongoing carbon reduction and circular economy initiatives.